The SGD/JPY exchange rate is moving in an eight month descending channel. The pair tested its bottom boundary near 79.60 late in March prior to reversing its sentiment and reaching the other boundary last week. Strong upside risks prevailed in the market on May, thus sending the pair 1.5% lower within a couple of hours.
As a result of this plunge, the Singapore Dollar breached a two-month trend-line at 82.00 and has since fallen even lower.
Technical indicators demonstrate that the pair might still move slightly lower until 80.00 in the short term, but it should pick up momentum within the following week and begin a medium-term appreciation. The pair faces a strong resistance level formed by the monthly and weekly PPs and the 200-hour SMA at 82.00.
The Singapore Dollar is likely to hinder near this area for a while, but it should afterwards pick up momentum and target 85.00.
As a result of this plunge, the Singapore Dollar breached a two-month trend-line at 82.00 and has since fallen even lower.
Technical indicators demonstrate that the pair might still move slightly lower until 80.00 in the short term, but it should pick up momentum within the following week and begin a medium-term appreciation. The pair faces a strong resistance level formed by the monthly and weekly PPs and the 200-hour SMA at 82.00.
The Singapore Dollar is likely to hinder near this area for a while, but it should afterwards pick up momentum and target 85.00.